Category: Burn Rate

Summary

This episode of the EC Minute looks at equity usage trends between 2016 and 2018 at S&P 500 and Russell 3000 (excluding S&P 500) companies. In particular, this episode reviews the ISS means (averages) and benchmarks (caps) set out for S&P 500 and Russell 3000 (non-S&P 500) companies for 2016, 2017 and 2018. The episode looks at the overall trends with respect to equity use averages (means) and benchmarks (caps) with respect to the two groups of companies over the period 2016-2018.

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Summary

This episode of the EC Minute looks at how companies can measure equity usage. Specifically, the episode looks at two common ways to measure equity usage, Run Rate and Burn Rate. Run Rate and Burn Rate are typically calculated on a gross basis and do not reflect forfeitures and any other events that would negatively impact the number of shares granted as equity awards during a year.

Additionally, the episode looks at a way to measure the economic value of equity granted using Exequity’s Equity Value Rate (EVR) measure. EVR can provide additional insight into a company’s equity usage especially when compared against labor competitors with larger market caps.